Retirement brings a wave of anxious thoughts that are often amplified by the number of big decisions that need to be made- a number of these decisions are intricately interconnected and have a large bearing on a person’s financial future. Data and research have shown that there is great value in long-term investing, especially for retirement. Consistently investing, both during good and bad times, can lead to significant growth over time, therefore we have learned that it is wise to focus on saving and investing early in life, if you invest early on you can build a secure financial future and minimize the reliance on other means, which may be uncertain in the long run. So, take control of your financial future, start saving and investing today, and look at our Pacific Retirement Services.
Have a wide range of mutual funds:
Mutual funds are often are common and popular choice for retirement planning due to their diversified nature. Being able to pull money together from different and numerous investors, and multiple investments in a diversified portfolio of stocks, bonds, and other securities will enable you to spread the risk.
What are the different types of mutual funds:
- Balanced funds: these funds invest in a mixture of equities and debt, offering more of a balance of risk and return therefore making it a more attractive investment for moderate risk-takers.
- Debt mutual funds: these funds focus on fixed-income securities such as government and corporate bonds. They are therefore less risky in comparison to equity funds and provide more stable returns.
- Equity mutual funds: these invest primarily in stocks and are better suited for long-term growth. They come with higher risk but also potentially higher returns.
ETFs (Exchange-Traded Funds)
ETFs combine the features of both mutual funds and individual stocks. They are traded on the stock exchange and allow for diversification along with more flexibility in stock trading. This includes the ability to diversify into other types of ETFs, such as stock, bond and gold ETFs.
What are the benefits of ETFs
- Low expense ratios
- Liquidity
- Transparency
Real Estate Investments:
Owning real estate is a great way to invest, it is a tangible asset that can provide regular rental income and the potential for capital appreciation. Therefore investing in real estate has the ability to diversify your portfolio and provide a hedge against inflation.
How to invest in real estate:
- Direct purchase; buying either residential or commercial properties for rental income and long-term appreciation.
- Real estate investment trusts; are companies that own, operate, and or offer finance in income-producing real estate, allowing a way to invest in real estate without directly owning property.
Embracing annuities:
Annuities are financial products that provide a steady income stream which is typically for retirees. They can be a valuable addition to your retirement plan, offering guaranteed income and reducing longevity risk.
What are the different types of annuities:
- Immediate annuities
- Deferred annuities
- Fixed annuities
- Varied annuities
Retirement from a retirement annuity:
Choosing when to retire from a retirement annuity is a vital decision in and of itself, it is important to get the timing right. While the rules of each specific fund determine the retirement age for pension and provident funds, this is not the same with regard to retirement annuities.
A retirement annuity investor can retire from the age of 55 and upwards, although there is no age limit when one can decide/ choose to retire. Therefore choosing when to retire is vital for one’s overall retirement and estate planning.
Investing in Bonds:
Bonds are deemed as a form of debt instrument which are issued by governments and corporations to raise capital. They are deemed to be safe investments and can provide regular interest income.
Types of bonds:
- Government bonds
- Corporate bonds
- Municipal bonds
The benefits of bonds:
- Stability and safety
- Predictable income
- Capital preservation
Investment returns, much like life’s many facets, move in cycles. Therefore putting all your assets in one investment basket is a strategy that is filled with risk. A robust and ideal retirement plan should weave together a variety of investment products and assets, which goes beyond mere local markets and expands internationally. Determining the exact location of different investment avenues is not the same for everyone; it hinges on your unique financial situation and your investment capacity. The cornerstone however of a successful investment journey is to begin early and stay the course with unwavering commitment.
